TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 864
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....orting the original advance ruling have changed. 4. Advance Ruling obtained by the applicant by fraud or suppression of material facts or misrepresentation of facts shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 5. The provisions of CGST Act, 2017 and DGST Act, 2017 are pari-materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the DGST Act and vice-versa. PROCEEDINGS (Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Delhi Goods and Services Tax Act, 2017) 1. The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Delhi Goods and Services Tax Act, 2017 (hereinafter referred to as "the CGST Act" and "DGST Act" respectively) by M/s. Young Optimistic Transport Solutions Private Limited seeking advance ruling in respect of the following issue. i. Whether the outward transportation services provided by the appl....
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....iable to pay GST on the same. The said service of "renting of motor vehicles to carry passengers" is a "service" as per Entry No.5(1) of Schedule II of the CGST Act, 2017. 2.5 That the Applicant has submitted that he will be covered under sl. no. 22 of the Notification 12/2014-CT (Rate) after the clarification issued vide Circular No. 164/20/2021-GST dated 06.10.2021 STATEMENT CONTAINING APPLICANT'S INTERPRETATION OF LAW AND/OR FACTS The services provided by the Applicant constitute supply and are subject to GST. 2.6 The services provided by the Applicant constitute supply defined under Section 7 of the Central Goods and Services Tax Act ("CGST Act") and are taxable under GST. 2.7 Based on the above, it is explicit that the Applicant is engaged in providing operating and offering services by way of public transportation under the scheme in the form of air-conditioned buses for the DoT under the Govt. of NCT of Delhi for use in return for a consideration, which qualifies as a supply of service under entry 5(f) of Schedule II of CGST Act. The services supplied by the Operator are essential services of rental of buses along with operation and maintenance of the same; th....
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....OT shall run on fuel including the drivers. As these buses run on petrol/diesel, which is the case in the Air-conditioned Operated buses. The consideration charged by the Applicant under the contract is inclusive of all the charges including the cost of fuel, repair and maintenance of the buses, and thus it can be said that the cost of fuel is included in the consideration charged by the Applicant. Therefore, the services supplied by Applicant are eligible to GST at the rate of 12% (with the availment of input tax credit on input supplies) or 5% (without availment of credit). 2.11 However, if the authority decides that the services are not covered under Entry 10(i) of the Rate Notification, tax shall be payable at the rate of 18% under residuary Entry 10(ii) which reads as follows: "Rental services of transport vehicles with or without operators, other than (i) above" 2.12 Hence, the services to be provided by the Operator shall be classified under SAC Code 9966: "Rental services of transport vehicles with operators" eligible to GST at the following rates :- (i) 12%, if the authority decides that services are covered by Entry 10(i) of the Rate Notification; or ....
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....case laws pertaining to erstwhile positive list based service tax regime. 8.3 It is relevant to note in this context that Schedule II of CGST Act. 2017 declares supply of any goods without transfer of title as supply of service even if right to use is transferred. Transfer of right to use has been declared as a supply of service [Schedule II, Entry 5(f) refers) 8.4 The issue was placed before the 45 GST Council Meeting held on 17.09.2021. As recommended by the GST Council, it is clarified that the expression. "giving on hire" in SI. No.22 of the Notification No. 12/2017-CT (Rate) includes renting of vehicles. Accordingly, services where the said vehicles are rented or given on hire to State Transport Undertakings or Local Authorities are eligible for the said exemption irrespective of whether such vehicles are run on routes, timings as decided by the Slate Transport Undertakings or Local Authorities and under effective control of State Transport Undertakings or Local Authorities which determines the rules of operation or plying of vehicles." 2.16 The impugned agreement reveals that there is the transfer of right given to DoT to use the buses. Effective possessi....
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....overed under entry no 10(i) of notification no 11/2017-central tax (Rate) dated 28.06.2017. 3.2 Given the above it appears that's service is covered under serial no 10(ii) of notification no 11/2017-Central tax (Rate) dated 28.06.2017 which reads as rental service of transport vehicles with or without operators other than (i) above. The tax rate on this service is 18% (9% CGST+9%SGST). The input tax credit will be available in this type of service. 3.3 On the other hand, the Centre Jurisdictional officer submitted that the applicant in the instant is a Taxpayer which deals in HSN 996411: Local land transport services of passengers by railways, metro, monorail, bus, tramway, autos, three wheelers, scooters and other motor vehicles, HSN 996414: Other land transportation services of passengers and HSN 996419: Other local transportation services of passengers nowhere else classified (as per records available on GST Portal). 3.5 As per Sr. No. 22 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, "Services by way of giving on hire - (a) to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or (b) to a goods....
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....terms of Concession agreement is actually the Stage carriage service by Air condition buses and not the Renting of transport vehicle and accordingly classifiable under SAC 9964 and covered under Entry No. 8(ii)(b) of Notification No. 11/2017-Central tax (Rate) dated 28.06.2017 as amended. On going through the various clauses stipulated in the Concession Agreement entered into by the Concessionaire and DoT, the services provided by the Concessionaire to DoT appeared to be "Transport of passengers with or without accompanied belongings by air-conditioned stage carriage" (in short "air-conditioned stage carriage") and those services were provided under agreement with DoT. These services appeared to be classifiable under SAC 9964 of GST Tariff and attracted GST @ 5% (CGST @ 2.5% and DGST @ 2.5%) provided that credit of input tax charged on goods and services used in supplying the service has not been taken in terms of Entry No. 8(ii)(b) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 as amended. 3.8 However, officials of DIMTS (Delhi Integrated Multi Model Transit Systems Limited) have stated that the Concessionaire was found to have discharged the GST liabilities un....
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....n under Section 50 of the CGST Act, 2017 and Input Tax Credit taken on goods and services used in supplying the Service of Air-conditioned Stage Carriage which amounted to CGST Rs. 5,92,56,245/-, SGST Rs. 5,92,56,245/-, IGST Rs. 51,23,53,582/- and Cess Rs. 19,011/- were ordered to be dis-allowed in terms Entry No. 8(ii)(b) of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 as amended which prohibits taking of Input Tax Credit such goods and services'. 4. RECORD OF PERSONAL HEARING: Accordingly, opportunity of personal Hearing was granted to the applicant on 09.07.2025, Sh. Neeraj Sharma, Director Sh. Nisar Batra (CEO, Authorized Representative) and Shri Vineet Bhatia (Advocate for the applicant) appeared for personal hearing on 09.07.2025 and submitted documents describing therein exact nature of work being undertaken by the applicant. From the side of Revenue Shri Himanshu Baghel, Inspector Range 151 (CGST) and Shri Umesh Kumar, GSTO (WARD 80-SGST) was present and submitted their reply dated 26.08.25 and 3.07.25 respectively. 5. DISCUSSION & FINDINGS: (a). We have carefully gone through the records of the case and taken into consideration the submissions ma....
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....0.2022. (d). After that the Delhi Authority for Advance Ruling was reconstituted on 29.03.2025 by the Competent Authority, and the Authority have taken up the application filed by the petitioner. (e). Further, on perusal of SCN dated 23.07.2024 issued by DGGI, forwarded by Central GST officer it has come to the notice of this Authority that during pendency of the present application, DGGI have initiated the investigation with regard to nature of services provided by the Concessionaire (the applicant) and the actual classification thereof, a letter dated 07.02.2023 was issued to the MD & CEO, Delhi Integrated Multi Modal Transit System Limited (DIMTS) for submission of information in respect of applicability of GST on Contractors of operation of private stage carriage services (AC Buses). Further, Statement dated 15.05.2023 of Shri Raj Kumar Arora, Director, M/S Delbus Mobility Pvt. Ltd., was recorded under Section 70 of CGST Act, 2017 before the Senior Intelligence Officer, DGGI (DZU), New Delhi who stated that he was also the Director of M/s Young Optimistic Transport Solutions Pvt. Limited (the applicant) & M/s. Indclan Mobility Private Limited and similar practice was foll....
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....fied in the order. 5.3. Chapter XVII - Advance Ruling is a benevolent piece of legislation in the Act with an objective to obviate litigation at initial stage of the issues arising in tax matters to taxpayers including any unregistered persons intending to commence any business activity. It provides an opportunity to all entities both commercial and non-commercial, Government and quasi-Government, statutory bodies, etc, hitherto not registered under any of the indirect tax laws to seek clarification on the taxability or otherwise of their activities after introduction of the GST Act, 2017, where the applicant is also not an exception. 5.4. However, before venturing to decide the questions on merits, the question of admissibility of the application needs to be decided in view of the information regarding issuance of SCN dated 23.07.2024 issued by DGGI, DZU, New Delhi, to the applicant came to the notice. It is apparent that the first proviso covers any 'proceedings' in the case of an applicant under any of the provisions of the Act including Section 70 of the Act, under which investigation is being conducted by DGGI, DZU, New Delhi. 5.5. However, the fact of issuance of the....